Austin Tax Blog


The Internal Revenue Service (IRS) will work with you if you owe them money and can’t pay right away.

But to receive this ‘mercy,’ you must first contact them and try for an administrative waiver for a first-time penalty abatement (FTA) waiver. The IRS may approve this waiver for you if you don’t pay or file your taxes on time and receive a penalty because of this.

But how do you manage this? Do you just call your local IRS office and plead mercy and hope for the best? No, you can actually choose your own approach when dealing with IRS.

How Do You Approach the IRS When You Face a Penalty

How Do You Approach the IRS When You Face a Penalty?

Well, sort of. You certainly need to let the IRS know ASAP your plans, but the most advisable course of action for IRS penalty relief is to hire a lawyer and have them work with the IRS for (and with) you. And this applies whether or not you’re seeking help for business or personal tax issues.

And don’t hire just any lawyer, mind you, you need to employ a law firm that has trained tax professionals, like IRS enrolled agents, who have years of training and experience in dealing with IRS penalty abatement, and all matters of fiscal difficulties you may face.

These professionals know the ever-changing tax code and their requisite penalties inside and out, as they receive continuing education to ensure they are completely prepared to handle your case thoroughly and efficiently.

What Is an IRS Enrolled Agent, and How Can They Help?

IRS enrolled agents are not lawyers (although they can be), but professional experts authorized by the IRS (or Department of the Treasury) to represent, advise and prepare returns for individuals or businesses. They are licensed by the IRS specifically to represent any taxpayer in regards to any issues, like IRS penalty abatement or IRS penalty relief, the taxpayer may be facing.

Many law firms that specialize in tax issues hire a team of IRS enrolled agents to handle IRS penalty relief or IRS penalty abatement accurately. It’s such a specialized field, these types of experts are crucial, and you shouldn’t expect anything less from the law firm you hire to handle your tax crisis.

What Kind of Excuse Will the IRS Accept for an IRS Penalty Abatement

What Kind of Excuse Will the IRS Accept for an IRS Penalty Abatement?

OK, so what does the IRS consider as reasonable in so far as an IRS penalty abatement waiver is concerned? Well, to correct an IRS error, for starters. But also the will consider reasonable cause and statutory aberrations, but mainly, they like to operate case-by-case, meaning, you just have to give them your reasons and hope they accept it.

This is another reason for hiring a law firm which specializes in tax law working your case. They can expertly frame your reasonable cause and present it to the IRS.

And don’t feel like a fish out of water. You may be surprised to know that according to statistics from 2012, almost 38 million penalties were levied upon taxpayers for a whopping $27 billion in penalties.

The IRS doesn’t flinch when it comes to dishing out fines and sanctions, but as the IRS penalty abatement indicates, they will work with you to get the money they are owed. They just want to make sure you cooperate with them in a timely and efficient manner.

And that’s where a law firm which takes IRS penalty relief for their clients seriously by making sure their staff is loaded with all-star tax talent like IRS enrolled agents or lawyers who have years of tax law experience.